HOUSTON (ICIS)--Braskem, the sole polyethylene (PE) producer in Brazil, reduced prices for all grades of PE in April, a company source confirmed this week.
The measure will reduce low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) prices by Reais 136/tonne (about $43/tonne), while the reduction for high density polyethylene grades will be Reais 90/tonne (about $29/tonne), net prices, excluding all taxes.
The Braskem pricing policy for April will likely affect Dow’s plans to implement another increase in Brazil for April, amounting to about $80/tonne.
Braskem export prices are stable, not affected by the domestic reduction.
There is increased competition in the west coast of South America, but it remains to be seen whether this will have an impact on prices.
US Gulf prices settled 3 cents/lb higher in March despite a 5.75 cents/lb drop in feedstock ethylene contracts for the same month.
Current prices for LDPE in Brazil are in the range of $2,020-2,130/tonne, according to ICIS records.